Meanwhile, mobile home owners have had no choice but to rely on the good graces of the dominant finance companies.
As Ms. Burnworth discovered, it can be difficult. His unemployment checks weren’t enough to cover his expenses after losing several short-term jobs, including one with the Census Bureau. She applied for a loan modification from 21st Mortgage to reduce her monthly payments, but said the company was unwilling to offer her one, even after she started receiving regular government checks in August for s ‘take care of his son.
In a statement, Clayton Homes, the parent company of 21st Mortgage, said it had not changed a loan, believing that offering borrowers short-term credit for a missed payment works better. The company said it gave Ms Burnworth loans totaling $ 3,649 for her mortgage when she ran into financial problems in previous years and did not ask for repayment.
âIt’s my responsibility to take care of the house and make the payments, but it’s hard to keep a job when you have a sick child,â said Burnworth. She said she had already disbursed over $ 130,000 in principal and interest over the term of the loan, which carries an interest rate of 9.25%. Clayton disputed the amount she had paid and noted that she did not own her loan during the first few years she lived in the house.
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While Ms. Burnworth owns the land on which her mobile home sits, many mobile home owners lease space from mobile home park operators, which are increasingly managed by large real estate companies. This arrangement means mobile home owners can find themselves making payments to both a finance company and a real estate company, increasing their chances of being evicted if they fall into financial difficulty.
Already there is indications that evictions could increase after the moratorium and post-pandemic relief end. A review of eviction requests in six states by the Private Equity Stakeholder Project, a nonprofit advocacy group, found five major mobile home park operators in a list of 150 business owners who filed the most deportation orders since the federal moratorium. in effect in September.
Raul Noriega, a Texas RioGrande Legal Aid attorney specializing in manufactured home cases, said an eviction for non-payment of rent to a park operator could amount to a mortgage foreclosure, as moving a trailer could cost several thousand dollars.